Group 9 (Ashley Ariaga, Susan Yeung, Jennifer Seltzer, Todd Robbins, Gabe Goldman, Seth Halperin)
1. Brief Description of Narrative 8.5.2 Manage pay (10754) 8.5.2.1 Enter employee time worked into payroll system (10858) 8.5.2.2 Maintain and administer employee earnings information (10859) 8.5.2.3 Maintain and administer applicable deductions (10860) 8.5.2.4 Monitor changes in tax status of employees (10861) 8.5.2.5 Process and distribute payments (10862) 8.5.2.6 Process and distribute manual checks (10863) 8.5.2.7 Process period end adjustments (10864) 8.5.2.8 Respond to employee payroll inquires (10865)
2. Detailed Narrative of Process
Background Lartin Mockheed is an Aerospace and Defense Corporation located in Orlando, Florida. It is a publicly owned and traded company. The corporation operates internationally and is looking to standardize its payroll process throughout its operations, as many of its divisions currently have different payroll procedures. The Corporate Controller would like to diagram a standardized corporate payroll process for implementation amongst its divisions. The Corporate Controller would like to detail the relationships for the processing of payroll for all employees, as well as management's and the accounting departments responsibilities. Lartin Mockheed has engaged Group 9 to assist in creating this diagram.
Payroll Process At the end of each two week pay period, Employee's of the company are responsible for recording hours worked during that pay period into the online payroll system. Only the Employee may enter the hours worked. Management retrieves the time sheet from the online payroll system at the end of the pay period and approves the hours entered by Employee. If Management determines there is a discrepancy in the hours worked, the Employee receives an automated notification from the online payroll system that their hours have not been approved. The Employee would then re-enter their hours worked. If approved, the payroll process continues and the Employee receives no notification .
The time sheet goes into a Payroll System where all Employee Payroll data is stored. The Payroll System references Human Resources database to determine pay scale, benefits, and tax status for the amount of withholding for each Employee's pay check. Deductions and taxes are then calculated by the Payroll System based on the amount owed to the Employee. The net amount for the check disbursement is then stored within the Payroll Data File.
The Accounting Department accesses the Payroll Data File to initiate the distribution of payment via paper check or direct deposit into Employee personal bank account. Each Accounting Department's Division Controller approves the Payroll Disbursements for the pay period. Once approved, the Accounting Department distributes pay checks to all Employees. If the disbursements are not approved, the process stops for further analysis by the Accounting Department. The Accounting Department then reconciles period-end payroll expense reports and records appropriate deferrals/accruals, where applicable.
Employee receives paycheck via check or direct deposit to their account. If necessary, Employee records into system a discrepancy query. This is then displayed to Management and the Accounting Department. The Accounting Department enters a response to the query into the system, and this response is displayed to both Management and the Employee.
Payroll Process for the Aerospace Industry
Group 9 (Ashley Ariaga, Susan Yeung, Jennifer Seltzer, Todd Robbins, Gabe Goldman, Seth Halperin)1. Brief Description of Narrative
8.5.2 Manage pay (10754)
8.5.2.1 Enter employee time worked into payroll system (10858)
8.5.2.2 Maintain and administer employee earnings information (10859)
8.5.2.3 Maintain and administer applicable deductions (10860)
8.5.2.4 Monitor changes in tax status of employees (10861)
8.5.2.5 Process and distribute payments (10862)
8.5.2.6 Process and distribute manual checks (10863)
8.5.2.7 Process period end adjustments (10864)
8.5.2.8 Respond to employee payroll inquires (10865)
2. Detailed Narrative of Process
Background
Lartin Mockheed is an Aerospace and Defense Corporation located in Orlando, Florida. It is a publicly owned and traded company. The corporation operates internationally and is looking to standardize its payroll process throughout its operations, as many of its divisions currently have different payroll procedures. The Corporate Controller would like to diagram a standardized corporate payroll process for implementation amongst its divisions. The Corporate Controller would like to detail the relationships for the processing of payroll for all employees, as well as management's and the accounting departments responsibilities. Lartin Mockheed has engaged Group 9 to assist in creating this diagram.
Payroll Process
At the end of each two week pay period, Employee's of the company are responsible for recording hours worked during that pay period into the online payroll system. Only the Employee may enter the hours worked. Management retrieves the time sheet from the online payroll system at the end of the pay period and approves the hours entered by Employee. If Management determines there is a discrepancy in the hours worked, the Employee receives an automated notification from the online payroll system that their hours have not been approved. The Employee would then re-enter their hours worked. If approved, the payroll process continues and the Employee receives no notification .
The time sheet goes into a Payroll System where all Employee Payroll data is stored. The Payroll System references Human Resources database to determine pay scale, benefits, and tax status for the amount of withholding for each Employee's pay check. Deductions and taxes are then calculated by the Payroll System based on the amount owed to the Employee. The net amount for the check disbursement is then stored within the Payroll Data File.
The Accounting Department accesses the Payroll Data File to initiate the distribution of payment via paper check or direct deposit into Employee personal bank account. Each Accounting Department's Division Controller approves the Payroll Disbursements for the pay period. Once approved, the Accounting Department distributes pay checks to all Employees. If the disbursements are not approved, the process stops for further analysis by the Accounting Department. The Accounting Department then reconciles period-end payroll expense reports and records appropriate deferrals/accruals, where applicable.
Employee receives paycheck via check or direct deposit to their account. If necessary, Employee records into system a discrepancy query. This is then displayed to Management and the Accounting Department. The Accounting Department enters a response to the query into the system, and this response is displayed to both Management and the Employee.
3. Entities & Activities Table
4. Context Diagram
5. Level 0 Diagram
6. Flow Chart